sub par credit - Posted by Kelly

Posted by Ed Garcia on January 30, 2001 at 10:36:31:


Your credit shouldn’t stop you. First of all, I would like to recommend for you to go to There you will find a credit repair kit with generic letters you can fill out to contact the credit bureaus. It gives you all the information you need to deal with repairing and improving your credit, and it’s for FREE.

Kelly the key to doing deals creatively is finding MOTIVITATED SELLERS and deal structuring. You can do that in Ohio. You credit problem will effect your costing and your allotted LTV, but you can structure around that.

Kelly when you lack money and credit, you learn to find deals and improvise. Here are 9 different ways to do a deal with credit problems.

9 ways to do a deal with bad credit

I just finished answering a post that I thought might be interesting for newbies who are just starting out and have poor credit.


In my workshop, I teach that there are at least 9 different ways you can do a deal with poor or bad credit.

Now before I give them to you, I want you to know that I’m really supportive of learning deal structuring. The first thing you need to do is, “investigate your deal” to know what I call (where the bodies lie) another words what is the seller’s main objectives or motivation. That allows you to have an idea of what approaches are going to be compatible with the sellers needs, allowing you to do the deal.

Here are the 9 ways that I’ve mentioned.

(1) PARTNERHIP: Find a 50/50 partner. It don’t have to be 50/50, it can be what ever you can negotiate.

(2) FLIP: the best way to flip is to find a potential buyer first and then find a property. You can do this by running an ad on a property to see what kind of action you get. Once you have a potential qualified buyer, you’d be surprised how easy it is to find them a house.

(3) LEASE OPTION: Many times you can buy and sell with a lease option. We call this a “Sandwich Lease Option”. Jim, I’m not going to go into any great detail, you can find this information all over this forum.

(4) SELLER CARRY BACK: This is one of, if not my favorite ways to buy. Now the best way to utilize this system is to do a second seller carry back in order to give the seller some cash in the deal. If money doesn’t exchange hands, many times the seller doesn’t feel that they consummated a sale.


I find a house that has a small balance on the first. Lets say the house is worth a $100,000; the balance on the first mortgage is $30,000.

If I wanted to buy this house for lets say $80,000, I could ask the seller to carry back $15,000 and go to a hard money lender to borrow 65% of AMV (appraised market value) of which is $65,000 and the seller carrying $15,000 in second position, would ad up to $80,000. It would also give your seller $35,000 new cash, and $125.00 income on the $15,000 loan that they carried at 10% interest only, for 5 years.

(5) HARD MONEY: Hard money, is an equity loan made at approximately 65% LTV, based on the equity of the property only. Credit is not a consideration.

(6) HARD MONEY/SELLER CARRY BACK: Again, You can have the seller carry back a second and refinance the first, giving the seller some money. You can do variations of this system.

(7) SUB PRIME FINANCING: Many National lenders will provide financing at 70% with poor credit and won’t verify money down.

(8) SUB PRIME/ SELLER CARRY BACK: Again this combination can provide money to the seller, rather than ask them to carry the whole thing. Also there are local independent portfolio lenders that will lend as well as mortgage co’s and I always recommend seeking them out. National one’s would be Associates Finance, American General, Beneficial etc.

(9) CREAT YOUR OWN MORTGAGE: In our work shop, Terry Vaughan covers this, and shows you how to discount it and market it.

Kelly, I hope this post is helpful to you and will encourage you to stay with it. The only way you won’t be successful in this business, is when you stop trying.

Ed Garcia

sub par credit - Posted by Kelly

Posted by Kelly on January 29, 2001 at 19:54:43:

I am very interested in starting my real estate investing career. However, my credit is not so hot. I don’t know my Beacon score. I have paid everything off, but the negative remarks still remain.
I live in Ohio and have a nice nest egg. I also have about $60,000 equity in my home. I have mutual funds also.
My question is I want to buy multi units . When I bought my home i live in I went " No income verification". I bought about my home 4 months ago. The interest rates have gone down. I got this home with no doc at 9% fixed 30 years. What would I be looking at for a non owner occupied home? I really want to make a go of this, but my credit is slowing me down.
Can You help?

Re: sub par credit - Posted by Bruce Lawson

Posted by Bruce Lawson on February 01, 2001 at 20:12:49:

I hear so much of it people having credit issues it is a problem with the big three credit reporting agencies ICR Services can help you Kelly contact me I am also in Ohio I am in the Dayton area I want to show you how to repair your credit issues.

Re: sub par credit - Posted by Bruce Lawson

Posted by Bruce Lawson on February 01, 2001 at 20:02:31:

Name: Bruce Lawson
Subject: Re: sub par credit
January 30, 2001 at 10:36:31:
Body of Message:

Kelly Hi my name is Bruce Lawson and I am in Dayton Ohio and I can tell you that after all the letter writing and telephone calls with the frustration you will most likely end up with those negative entries still there,you see the big three credit reporting agencies do not want you to repair your credit because you mean more money to them with blemished credit. When you write your letters don’t forget to address all three agencies you will see some things deleted but how do you know if they remain off your reports? you don’t untill you apply for credit then you find that all your hard work was for not,and that stinks. E-mail me asking for information on ICR Services I will respond as soon as I receive it, because there is something you can do without all the aggravation. I will be looking for your e-mail
ICR Services could be just what you need so you can start your investing career enjoying those nice 5-6% interest rates. Look at the corp website


Bruce Lawson
Independent Representative of
ICR Services,Inc.